USDCAD 1D MA50 the key. Buy above, sell below.

The USDCAD couldn't have confirmed our bearish view more than a month ago, when we called for a sell opportunity based on the RSI Bearish Divergence (Lower Highs against the price's Higher Highs):


As you see the divergence sell signal was spot on and the previous two times that this was spotted, helped us in a great way to spot this. Right now the price is below its 1D MA50 (blue trend-line) inside a Channel Down. The minor rise since November 11, could do the most important medium-term test, the 1D MA50. A closing above the 1D MA50 will turn the pair bullish again targeting the 1.39860 High. As long as the price remains below it though, the strategy remains sell on such rebounds, targeting the 1D MA200 (orange trend-line), which should land within the 0.618 and 0.786 Fibonacci retracement level, which was where the Lows of October 21 2021 and January 13 2022 where made (previous divergencies).

Notice that if the 1D MACD completed the Bullish Cross that has started to be formed today, this is consistent with all prior Higher Lows since May 2021 and will favor a bullish break-out.


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